Once again the online retailers have began flouting the FDI policy, alleged the Confederation of All India Traders (CAIT). Referring to the festive offers termed as big sales being conducted by the e-commerce companies, it said, this is the second time after the release of FDI policy 2016 when such violations are openly being committed.
As per Government’s FDI policy, it is clearly established that online retailers who have received FDI will act as marketplace where they will provide technology platform and in no way they can influence the prices.
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However, CAIT said that by organising big sales these online retailers are emphatically influencing the prices and creating an uneven level playing field which is contrary to the FDI policy.
“They can not offer any discount but they are offering discounts on their portals and no one is checking them. If these online retailers are really operating as a marketplace where they are allowed to undertake Business to Business (B2B) transactions then where is the need of big advertisement campaigns addressing the general public?,” asked National President, B.C.Bhartia and Secretary General, Praveen Khandelwal in a joint statement.
“Such an act is creating an uneven level playing field much to the disadvantage of offline retailers but no one is bothered about offline retail trade which is often called as backbone of Indian economy. Having FDI on their side, the online retailers are bent upon in wrecking the backbone of economy,” they added.
The CAIT has decided to submit a petition to Prime Minister and Finance Minister invoking their attention towards alleged gross violation of FDI policy by online retailers. “If need be we will also seek justice from legal course,” said trade leaders.